Porsche leads $400 million investment in EV battery startup Group14

Resonac Holdings

04/05/2022 11:00

By Paul Lienert
    May 4 (Reuters) - Electric vehicle battery startup Group14
has raised $400 million from a group of investors led by
Germany's Porsche  PSHG_p.DE , the firm said on Wednesday.
    Part of that money, which boosts Group14's valuation to more
than a billion dollars, will be used to build a second battery
materials factory near the firm's current site in Woodinville,
outside Seattle, Chief Executive Officer Rick Luebbe said in an
interview.
    Luebbe described the firm's silicon-carbon anode material as
"transformational technology" that will enable EV batteries to
charge more quickly and hold more energy than those that use
graphite.
    Most of the lithium-ion batteries in today's EVs use anodes
made of graphite, which mainly comes from China with smaller
quantities from Canada and Japan.
    Because Group14's silicon-carbon anode material enables
lithium-ion batteries to hold up to 50% more energy, Luebbe said
they can provide the same range as current graphite-based
batteries, but with fewer cells, thus reducing the overall cost
and size of the battery pack.
    Luebbe said Group14 will supply battery materials to Porsche
affiliate Cellforce. It also has an existing supply deal with
another European battery maker, InoBat. The first EV batteries
to use Group14's anode material will go into production in 2023,
but Luebbe declined to identify the manufacturer.
    Group14's previous investors include a number of companies
in the EV battery sector, including ATL, BASF  BASFn.DE , Showa
Denko  4004.T , Cabot  CBT.N  and SK Material  036490.KQ . The
last firm, a member of Korea's SK Group, has a joint venture
with Group14 to make anode materials in that country.
    Luebbe said Group14's anode material has been tested by
battery makers Storedot and Farasis. The Storedot battery
equipped with Group14's silcon-carbide anode material could be
charged to 80% capacity in 10 minutes, he said, and has the
potential to fast charge in as little as five minutes.

 (Reporting by Paul Lienert in Detroit; editing by Bernard Orr)
 ((Paul.Lienert@thomsonreuters.com; mobile +1 313-670-2452;))